What happened?
As featured in Always Finance News, Joe Norburn, CEO of TCC Group, said AI is now widely embedded across financial services, from fraud detection to customer onboarding and credit assessments.
While firms have adopted AI to improve efficiency and decision-making, regulators such as the FCA are increasing their focus on governance, accountability and operational resilience as AI becomes more deeply integrated into core processes.
Why does it matter?
Norburn said the main challenge is no longer adopting AI, but ensuring the underlying data is reliable, explainable and auditable. Generative AI tools can process and summarise information effectively, but often struggle to meet regulatory expectations for traceability and oversight.
“Inside firms, the conversation is shifting,” Norburn said. “Earlier discussions around AI focused heavily on opportunity. Those conversations have not disappeared, but they now sit alongside more practical concerns about control, governance and accountability.”
Who is affected?
The analysis is relevant to firms using AI in fraud detection, customer onboarding and credit assessment across banking, lending, payments and fintech, wealth management, pensions, general insurance and motor finance.
Wider implications
Norburn notes that purpose-built AI models built on trusted, structured data are helping firms deliver more accurate predictions, reliable reporting and transparent insights that can be clearly traced and explained to regulators, in contrast to generative tools that can struggle with traceability.
Recommendations
Firms moving from opportunity-led AI discussions to control and governance should prioritise data quality and traceability alongside efficiency gains.
Supporting sources
Frequently asked questions
What does Joe Norburn say is the main AI challenge now?
He says the challenge is no longer adopting AI, but ensuring the underlying data is reliable, explainable and auditable.
Why can generative AI tools be a regulatory concern?
Generative AI tools can process and summarise information effectively but often struggle to meet regulatory expectations for traceability and oversight.
What alternative does the analysis point to?
Purpose-built AI models trained on trusted, structured data are described as helping firms deliver more accurate, transparent and traceable outcomes.
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- BankingTCC helps retail banks, challenger banks, building societies and specialist banking providers strengthen governance, manage financial crime risk and demonstrate good customer outcomes. Our specialists support Consumer Duty, remediation, regulatory transformation, FCA intervention and compliance assurance programmes through advisory, managed services, specialist resourcing and technology-enabled compliance. With more than 25 years of experience supporting FCA-regulated firms, we help banks respond confidently to regulatory scrutiny while strengthening operational resilience and customer trust.
- General Insurance & ProtectionTCC helps insurers, brokers, MGAs and protection providers evidence fair value, strengthen customer outcomes and identify emerging customer harm. We assess product governance, claims performance, distribution oversight and vulnerability risks, helping firms create regulator-ready evidence, improve operational performance and demonstrate that products and services deliver value throughout the customer lifecycle.
- Lending & Consumer CreditTCC helps consumer credit firms evidence good outcomes, strengthen affordability and vulnerability frameworks, and manage complaints, remediation and regulatory risk. We support lenders with practical, regulator-ready compliance programmes that improve governance, customer treatment and operational resilience.
- Motor FinanceTCC helps motor finance lenders, brokers and providers assess redress exposure, prepare for large-scale customer reviews and strengthen complaints, affordability and Consumer Duty frameworks. We combine regulatory advisory, managed operations, specialist resource and technology-enabled assurance to deliver consistent customer outcomes, robust governance and regulator-ready evidence under heightened FCA scrutiny.
Reviewed by Joe Norburn, CEO – TCC Group